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Saved Help Tatooine Company operates on three different planets in the galaxy. They are recelving reports that operations may need to cease on Alderaan soon.

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Saved Help Tatooine Company operates on three different planets in the galaxy. They are recelving reports that operations may need to cease on Alderaan soon. Income statements for these planets imply that profitability could be improved if operations in Alderaan were eliminated. TATOOINE COMPANY Income Statements for Year 2 Segeant Alderaan Batuu Tatooina Sales $ 169,000 $247,000 $247,000 Cont of goods sold (128,000) (92,000) (82,000) Sales commissions (20,000) 23,000 (32,000) Contribution margin 21,000 132,000 133,000 General fixed operating expenses (allocation of president's salary) (35,000) (40,000) (42,000) Advertising expense (specifie to individual planeta) 14,000) (11,000) 0 Net Income (loss) S (18,000) $ 81,000 $ 91,000 Required a. Prepare a schedule of relevant sales and costs for operations in Alderaan, b. Prepare comparative Income statements for the company as a whole under two alternatives: (1) the retention of operations in Alderaan and (2) the elimination of operations in Alderaan. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule of relevant sales and costs for Alderaan Relevant Rev. and Cost items for Alderaan Sales a. Prepare a schedule of relevant sales and costs for operations In Alderaan. b. Prepare comparative Income statements for the company as a whole under two alternatives: (1) the ret In Alderaan and (2) the elimination of operations in Alderaan. Complete this question by entering your answers in the tabs below. 16:07 Required A Required B Prepare a schedule of relevant sales and costs for Alderaan. Relevant Rev. and Cost Items for Alderaan Sales Effect on income $ 0 Red Required B > Complete this question by entering your answers in the tabs below. Required A Required B Prepare comparative Income statements for the company as a whole under two alternatives: (1) the retention of Al (2) the elimination of Alderaan. TATOOINE COMPANY Comparative Income Statements for the Year 2 Decision Eliminato Keep Alderaan Alderaan Sales Cost of goods sold Sales commissions Contribution margin 0 $ General fixed operating expenses Advertising expense Net Income 0 $ 0 0

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